The maiden helium development well at Blue Star’s Galactica/Pegasus project is on track for drilling in Q2 2024
Project potential already proved by four successful exploration wells
Neighbouring third-party helium producer further de-risks development
Special Report: Blue Star Helium is on track to drill the maiden helium development well at its Galactica/Pegasus project in Las Animas County, Colorado, during this quarter.
Galactica/Pegasus is a large-scale project that has already been proved by four exploration wells that returned strong helium concentrations of 2-6.1% and flowed gas at rates of between 125,000 and 412,000 cubic feet per day.
These wells proved Blue Star Helium’s (ASX:BNL) previous interpretations of gas on logs from the historical Denton B #1 and Colorado #B-1 wells.
It is further de-risked by helium production and sales from the neighbouring third-party Red Rock project.
There is also plenty of room for growth as the company already has 11 potential development well locations permitted with four currently fully permitted for drilling.
Planned development well locations at the Galactica/Pegasus project. Pic: Blue Star Helium
Development well spud on track
BNL is all set to drill the first development well – State 16 SWSE 3054 – this quarter out of its existing cash reserves.
It has inspected the well site location, secured land access and engaged the construction crew for pad and access upgrades, which is expected to start this week.
Ongoing discussions with various parties have determined that there is potential to monetise the CO2 gas that flows from the reservoir in addition to the helium.
Voyager still on its journey
Meanwhile, BNL is considering other commercialisation pathways for its Voyager helium project, which remains a substantial, high concentration, discovered helium resource.
While the project was originally prioritised due to expectations that it would be the highest-returning project in its portfolio, analysis has revealed this is no longer the case.
Remapping of Voyager will also be undertaken with data gathered during the recent drilling being incorporated into future models.
The company will consider potential pressure leak points (faults or intrusive dykes) while also considering the top seal potential locally.
This work is expected to uncover additional prospective areas on the greater structure for future drilling consideration.
This article was developed in collaboration with Blue Star Helium, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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